Netflix shares up 14% on growth prospects

Chronicle News Services

Published 4:00 am, Tuesday, January 10, 2012

Photo: Mark Lennihan, Associated Press

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FILE - In this file photo taken Jan. 11, 2011, Tim Cook, Chief Operating Officer of Apple, announces that Verizon Wireless will carry Apple's iPhone, in New York. Apple Inc. on Wednesday, Aug. 24, 2011 said Steve Jobs is resigning as CEO, effective immediately. He will be replaced by Cook, who was the company's chief operating officer. It said Jobs has been elected as Apple's chairman. (AP Photo/Mark Lennihan, File) less

STREAMING VIDEO

Netflix shares rise 14% on growth prospects

Netflix Inc. shares rose the most in almost 12 months, bringing its gain for the new year to more than 40 percent.

Whitney Tilson, managing director of T2 Partners LLC, told CNBC Netflix was rising on buyout rumors and prospects for subscriber growth in its U.S. streaming business and internationally, including the United Kingdom service that started Monday.

The Los Gatos company's stock rose 14 percent to close at $98.18, its highest close since Oct. 24. The gain marked the largest one-day jump since Jan. 27 and made Netflix the biggest gainer Monday among S&P 500 index members.

Google, which makes the Android mobile-phone operating system used by Motorola Mobility, is counting on the deal to bolster its intellectual-property holdings and expand its reach in the mobile industry. Motorola Mobility has more than 17,000 patents that Mountain View's Google can use in its legal tussles with rivals such as Apple.

COMPENSATION

Apple CEO to get $378 million

Apple Inc. said CEO Tim Cook is due to receive compensation worth $378 million, including restricted stock awards that are payable over the coming decade.

The total includes $376.2 million in shares that will vest starting in five years, the Cupertino company said Monday in a regulatory filing.